Orange County Register

Southern California consumers have been hit with deflation for the first time in 54 years — a small bit of good news coming out of the economic slowdown.

The region’s Consumer Price Index for January was 0.1% below the start of 2008, the first drop in this measure of local cost of living since June 1955. SoCal’s CPI averaged a 3.5% gain for all of 2008.

January’s year-over-year drop was largely due to falling energy costs — gasoline was 37% cheaper last month than a year ago; electricity and home heating gas was off 5%. Also, food prices rose at a 3.1% annual rate, lowest in 16 months.

Clothing costs broke the deflationary trend, a bit, rising at a 3.5% annual rate –highest since September.

Nationally, inflation for the 12 months ending in January was zero — lowest since August 1955.

Other local economic news …

January home-price report …

• O.C. foreclosures hit 4-month high
• Prices fell in 70 of 83 O.C. ZIPs
• O.C. homebuying spurt longest in 5 years
• H.B. home sales make whopping gain
• Laguna’s median home price down 60%

John Laing Homes bankruptcy …

• $977 million debt gets builder in bankruptcy
• Talega key to bankrupt Laing’s future?
• OC builder costs owner $733 million loss
• Laing lays off 72 OC workers

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